Government interest rates fall as fears of economic downturn rise

US government interest rates fell on Tuesday morning, with investors continuing to focus on the Covid-19 outbreak in China and concerns about a global economic downturn.

The yield on the benchmark 10-year government bond fell below a basis point to 2.8335% at 03:45 ET. The yield on the 30-year government bond fell less than basis points to 2.9048%. The dividend moves in reverse to prices, and 1 basis point is equal to 0.01%.

Government interest rates fell on Monday along with a divestment in the stock markets. This came amid concerns that a Covid-19 outbreak in Beijing, China, could see a shutdown and slow economic growth in the region.

Beijing announced late Monday that it would expand mass testing for the virus.

The potential pull on economic growth from higher inflation and rising interest rates also remains a concern for investors.

David Pierce, CEO of GPS Capital Markets, told CNBC’s “Squawk Box Europe” on Tuesday that he thought the Federal Reserve would raise interest rates by 50 basis points at both of the next two policy meetings.

Pierce said, however, that these increases “could really trigger a turnaround in the economy and slow things down so much that they may have to back them up very quickly – it’s a really volatile situation right now.”

Stock options and investment trends from CNBC Pro:

As for financial data releases to be released on Tuesday, March’s order numbers for durable goods are set to be released at 6 p.m. 8:30 ET.

The S & P / Case-Shiller house price index for February is expected to be out at 9.00 ET.

March’s new home sales data and CB’s consumer confidence index for April are scheduled to be released at. 10:00 ET.

Developments in the war between Russia and Ukraine also remain in focus for investors. At a high-level meeting in Kiev on Sunday, the United States pledged just over $ 700 million in military funding to help Ukraine and other allied countries in Central and Eastern Europe involved in the war effort.

The US State Department approved a potential sale of $ 165 million in ammunition to Ukraine.

Meanwhile, a $ 48 billion auction of 2-year-old banknotes is scheduled for Tuesday.

CNBC.com staff contributed to this market report.

Leave a Reply

Your email address will not be published. Required fields are marked *